As companies that manage financial markets, securities exchanges do not face material risks from direct environmental effects as occurs in other industries. However, due to its unique position within the financial system, the securities industry is required to encourage the market’s participants to disclose non-financial risks based on environmental, social the direct relationship between the ESG criteria and their material financial impacts.

From the investors’ perspective, sustainability just involves understanding the non-financial risks, such as climate change for example, which they face when assessing investments in any industry. Inadequate information about the non-financial risks of an investment can lead to a poor valuation of assets and consequently, bad placement of capital, which, generally speaking, can generate financial instability and abrupt changes in the markets.

However, part of the challenges faced by the securities industry, and the way in which companies disclose non-financial risks, is that the information needs to be consistent, comparable, reliable and clear, and the companies need to correctly communicate the direct relationship between the ESG criteria and their material financial impacts.

In 2016, the BVC continued to work on the development and promotion of sustainability and responsible investment standards among market participants and different stakeholders. Therefore, and as part of its commitment to the best information disclosure standards, investor relations and sustainability, the Exchange ended the year with 32 companies listed in the its IR Recognition Program (the guidance for the Colombian securities market adopted voluntarily by BVC issuers). Out of which, 27 (including the BVC as an issuer) are reporting their sustainability practices under the Global Reporting Initiative (GRI), which also complies with the WFE Guidance & Recommendations.

In the same line, and as part of our commitment to achieve the best sustainability reporting standards, at the end of the year we decided to participate along with 100 global companies in the pioneering program of the new GRI standards for integrated management reporting.

Additionally, the BVC has continued to voluntarily participate in the initiatives of the UN Global Compact since 2012, and in the Sustainable Stock Exchanges (SSE) initiative since 2014. It is also part of the Sustainability Working Group of the World Federation of Exchanges (WFE), which in 2016, participated in the creation of a survey and guidance for the federation’s exchanges.

As a signatory of the UN Global Compact, the BVC reinforces its commitment to the principles of said compact and in 2016, it sent its third annual progress report using the G4 format as part of integrated reporting.

Regarding its commitment to labor rights, the BVC has fo­cused on the development of its employee talent mana­gement practices. Regarding environmental principles, it has carried out impact investments through Inversor Pri­vate Equity Fund (Fondo Inversor), which aims to resolve social and environmental challenges through sustainable and economically profitable business models. Finally, in the anti-corruption principle, the Company has a Good Governance Code, an Ethics and Conduct Manual, and a strong Internal Control System, which provide the necessary tools to minimize and control any risk of fraud or corruption.

BVC GRI GOLD Community Member

We are a member of the GOLD Community and support the mission of GRI to empower decision makers everywhere, through GRI Sustainability Reporting Standards and its multi-stakeholder network, to take action towards a more sustainable economy and world.

Sustainable and Responsible Investment: General Outlook, Current Practices and Tendencies

22/2014/07 06:37 AM

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This report explores the dynamic field of Sustainable and Responsible Investment (SRI) and offers a general overview of its origins and evolution, factors that impulse its growth and the strategic key points used by investors. Also, the report explores the SRI within a Latin-American context, taking into account the region’s characteristics and circumstances that may influence the SRI’s development in the upcoming years. Lastly, it provides a summary of the SRI in Latin-America and offers suggestions on how the financial field’s major organizations can contribute to the growth of SRI within the region.